Pakistan Income Tax Calculator
Estimate your FY 2026-27 salaried income tax using the FBR slabs confirmed in the June 2026 federal budget, effective 1 July 2026.
What this calculator does
Estimates your Pakistan salaried-individual income tax liability under the FY 2026-27 FBR slabs, showing exactly how much falls into each progressive band.
Who this is for
Salaried employees in Pakistan estimating their tax bill for the new fiscal year, anyone comparing a job offer, or people wanting to check how this year's slab changes affect their take-home pay versus last year.
How this calculator works
Uses the FBR salaried-individual slabs for FY 2026-27 (1 July 2026 – 30 June 2027), confirmed in the federal budget presented 12 June 2026: 0% up to Rs 600,000, then seven progressive bands rising to 35% above Rs 7,000,000. The 9% surcharge that previously applied above Rs 10 million was abolished for salaried individuals starting this fiscal year.
Worked example
Rs 1,800,000 annual salary: this falls in the Rs 1,200,000–Rs 2,200,000 slab. Tax = Rs 6,000 base (accumulated from lower slabs) + 11% × (1,800,000 − 1,200,000) = 6,000 + (11% × 600,000) = 6,000 + 66,000 = Rs 72,000 total tax, an effective rate of about 4% on the full salary.
A second example at Rs 3,500,000: this falls in the Rs 3,200,000–Rs 4,100,000 slab. Tax = Rs 316,000 base + 25% × (3,500,000 − 3,200,000) = 316,000 + 75,000 = Rs 391,000, an effective rate of about 11.2% — still well under the 25% marginal slab, though the gap between effective and marginal rate narrows noticeably compared to lower incomes.
Overseas Pakistanis, Gulf Remittances, and Residency Status
This calculator models salaried income for Pakistan-resident taxpayers. But a huge share of Pakistan's economy runs on money earned elsewhere: the country received a record $41.6 billion in workers' remittances in FY2025-26, up 8.6% year-on-year, with Saudi Arabia ($9.78 billion) and the UAE ($8.81 billion) together supplying nearly half of that total — see our UAE and Saudi Arabia calculators if you're working in either market.
Unlike the Philippines' blanket exemption for its overseas workers, Pakistan's system hinges entirely on residency status. Spend 183+ days outside Pakistan in the tax year (July 1 – June 30) and you're classified as a non-resident, taxed only on Pakistan-source income — your Gulf salary itself stays untaxed by Pakistan. Get the residency classification wrong on your FBR return, though, and your entire worldwide income — including a salary earned in Riyadh or Dubai — becomes taxable in Pakistan, which is a real and increasingly-enforced risk as FBR expands data-matching against travel and banking records. Foreign remittances up to Rs 5,000,000 per year through official banking channels are exempt from being questioned as taxable income regardless of residency status.
Where your income goes
Run the calculator above to see the tax vs. take-home split.
FY 2026-27 tax slab breakdown
Run the calculator above to see your income split across slabs.
Common mistakes
- Using last year's slabs. FY 2026-27 cut rates across four bands compared to FY 2025-26 (e.g. the old 35% top band above Rs 4.1 million is now split into 29%/32%/35% tiers) — using stale figures overstates your tax.
- Applying the salaried slab to business income. Non-salaried individuals and AOPs face a steeper table (up to 70%) starting at the same Rs 600,000 threshold — the two are not interchangeable.
- Forgetting the surcharge no longer applies to salaried earners. The 9% surcharge above Rs 10 million income was scrapped for salaried individuals this fiscal year, though it remains for non-salaried filers.
- Applying the top slab rate to the whole salary. Only the portion of income within each slab is taxed at that slab's rate — your effective overall rate, like the 4% in the example above, is always lower than your top marginal slab rate.
- Getting residency status wrong on an FBR return. Selecting "Resident" instead of "Non-Resident" (or vice versa) can expose an entire foreign salary to Pakistani tax, or create a filing gap — verify your actual days-in-Pakistan count for the tax year before submitting.
- Assuming all remittances are automatically tax-free with no limit. Remittances up to Rs 5,000,000/year through official banking channels are exempt without FBR asking for the source — amounts above that can be added to taxable income if the source isn't documented.
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Frequently Asked Questions
Why did tax slabs change for FY 2026-27?
The federal budget presented 12 June 2026 restructured four of the upper income bands, splitting the old 35% top tier (above Rs 4.1 million) into three separate tiers at 29%, 32%, and 35%, generally reducing tax for salaried individuals across those income levels compared to FY 2025-26.
What tax year does this use?
FY 2026-27 (1 July 2026 to 30 June 2027), using the salaried-individual slabs confirmed in the federal budget presented on 12 June 2026.
Is there still a surcharge on high incomes?
No. The 9% surcharge that applied to salaried individuals earning above PKR 10 million was abolished starting FY 2026-27. It still applies to non-salaried filers.
Does this apply to non-salaried or business income?
No, non-salaried individuals and AOPs face a separate, higher slab table with rates up to 70% on much lower thresholds — this calculator only models the salaried-individual slabs.
Do overseas Pakistanis pay tax on their Gulf salary?
Not if properly classified as non-resident — spending 183+ days outside Pakistan in the tax year makes you a non-resident, taxed only on Pakistan-source income. Get this classification wrong on your FBR return and your entire worldwide income, including a Gulf salary, can become taxable in Pakistan.
Is there a limit on tax-free remittances to Pakistan?
Remittances up to Rs 5,000,000 per year through official banking channels are exempt from being questioned as taxable income, regardless of residency status. Amounts above that may require documenting the source.